Summer Budget 2015 – Landlords Reactions

Reply to the comment left by “Simon Lever” at “14/07/2015 – 17:17“:

Simon,

So you do agree that, you will pay £2000 extra?

Reply to the comment left by “Simon Lever” at “14/07/2015 – 17:17“:

Hi Simon

I have also studied tax and accounting as they are essential aspects of underwriting commercial loans. I’m pleased that we see things the same way.

I would be very interested in your feedback on the tax restructure outlined in my article linked below.

Reply to the comment left by “Gary Mason” at “14/07/2015 – 16:48“:

If you have made £0 profit and made £200000 interest payments…as a higher rate tax payer you will pay £40000 tax and that”s after 20% relief.

I don’t think that is correct Gary.

Even if it was, as per the point I made earlier, there is no legal requirement to declare any interest payments, so why would a landlord pay £40000 tax on it?

Reply to the comment left by “Monty Bodkin” at “14/07/2015 – 17:23“:

I am on the verge of giving up trying to explain this!

Please read my latest comments, just scroll up a bit. Please also read Simon’s comments, he is an accountant.
.

Reply to the comment left by “Gary Mason” at “14/07/2015 – 17:15“:

Gary. The clue is in the title, income tax! why would you imagine a direct cost is added to your rental income and tax is paid on the total?

Reply to the comment left by “Simon Lever” at “14/07/2015 – 17:17“:

Simon,

With all due respect, I would not like you to be my accountant…and on the same token you would not like me to be your client.

If Mark has £50000 income he is a higher rate tax payer..so the way it will work he will be taxed on £50k at source from his employer and remaining £10000 will be taxed at 40% therefore total liability £4k but then he will reclaim £2k tax relief at 20% as such final liability will be additional £2k from today’s tax.

So where have I gone wrong? Please explain…do not just make sweeping statements.

Reply to the comment left by “Mark Alexander” at “14/07/2015 – 17:25“:

LOL Mark, it looks like Monty is off his cliff, as he wants to give Osborne 20% extra by not disclosing his mortgages…as he is feeling super rich!

Reply to the comment left by “Gary Mason” at “14/07/2015 – 17:21“:

No I do not agree.

Assume the tax payable on the £50,000 salary is £8,000. (rounded for simplicity)
If I had no BTL then this is the tax I would pay.

If had a BTL as well but no income from it and no expenses I would still pay £8,000 tax.

If I had a BTL , no income from it and paid interest of £10,000 then the tax I would pay would still be the £8,000 as above. As I had no rental PROFIT I would not be allowed to offset the tax releif on the interest against my other income but would, I think, be able to carry it forward to offset against rental profits in the future.

Having rethought my previous post the £2,000 offset would not be avaialable aginst the other tax in the year.

(That got more complicated than I expected)

Reply to the comment left by “Monty Bodkin” at “14/07/2015 – 17:23“:

Monty,

If you did not then you will pay £80k tax…..hahahah…

Have you got that now, or you still confused?

Reply to the comment left by “Gary Mason” at “14/07/2015 – 17:26“:

Gary. There is no remaining £10000. That is an expense not income. I’m also an accountant, albeit a tired exasperated one!